EUR/USD Stumbles As Hammer Fails To Find Follow-Through
- EUR/USD Technical Strategy: Sidelines Preferred
- Hammer Candlestick Finds Limited Follow-Through
- Daily Close Below 1.3400 To Open Descent To 1.3320
EUR/USD has failed to overcome selling pressure at the 1.3440 mark despite a Hammer candlestick formation in its wake. A retreat under the psychologically-significant 1.3400 handle would set the stage for a resumption of the pairs’ downtrend and open the 1.3320 floor.
EUR/USD: Recovery Stumbles At Nearby 1.3440 Hurdle
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Drilling down to the four hour chart; a Harami pattern was initially met with little enthusiasm from traders, yet eventually saw the Euro edge lower. A void of bullish reversal candlesticks casts some doubt on the potential for a recovery for the pair over the session ahead. However, the nearby 1.3400 handle may act to slow the common currency’s descent.
EUR/USD: Absence of Key Reversal Patterns Casts Doubt On A Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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